Vietnam holds high growth potential for US agri exports: authorities

Vietnam continues to hold high growth potential for American agricultural exports thanks to its projected population and economic growth, the Foreign Agricultural Service (FAS) under the U.S. Department of Agriculture has said.

Vietnam is a dynamic market with a rapidly growing middle class and a young population influenced by global consumer patterns, rising per capita income, and an expanding economy in key sectors such as retail, tourism, and food processing, the agency said in a note.

With a burgeoning population and a growing middle class, driven by significant economic expansion in the coming decades, Vietnamese consumers are becoming more discerning about the origin and composition of their food and increasingly demand high-quality, safe, and nutritious products.

As suppliers of safe and high-quality agricultural products, U.S. agricultural exporters are in a good position to bolster sales in the Vietnamese market. Vietnam also has growing sectors able to absorb high-value U.S. products such as retail, tourism, and food processing, and consumers are increasingly focused on health and wellness, said the FAS.

In 2023, Vietnam imported $32 billion of agricultural products. Imports have increased over the past three years as Vietnam recovered from Covid-19 related trade and travel disruptions.

The U.S. exported $3.1 billion in agricultural products to Vietnam in 2023, the third largest agricultural product exporter to Vietnam behind China and Brazil. Top exports were in bulk commodities related to feed and manufacturing, such as cotton, soybeans, distiller grain, tree nuts, and dairy products.

The FAS noted while these products make up a large portion of the U.S. market share, many consumer-oriented goods are also among the top products exported and represent exciting growth opportunities. U.S. exporters of consumer-oriented products are well poised to fill this demand as both the population and the middle class continue to grow.

It added that dairy products (cheese, non-fat dried milk powder), fresh fruits (apples, cherries), meat products (beef, poultry), processed products (condiments, pet food), and tree nuts (pistachios, almonds) are all exciting growth areas for U.S. exporters.